RCI Hospitality Holdings announced that a Joseph‑controlled entity has purchased a 49% interest in its Austin venue, Rick’s Cabaret, for $1.8 million in cash. The transaction closed on Friday, November 14, 2025, and places Jonathan Joseph—majority owner of the Yellow Rose Cabaret and Red Rose Adult Nightclub—into RCI’s leadership circle alongside CEO Eric Langan, Duncan Burch, and Troy Lowrie.
The deal aligns with RCI’s “Back to Basics” 5‑Year Capital Allocation Plan, which prioritizes strengthening the core nightclub business and allocating free cash flow to club acquisitions. By bringing in a local entrepreneur who has successfully transformed Austin’s gentleman’s club scene into a nightclub‑style experience, RCI gains on‑the‑ground marketing and operational expertise that should accelerate growth in a high‑growth market and improve local operational control.
RCI’s Q3 2025 earnings provide context for the partnership. The company reported revenue of $71.15 million, beating analyst expectations of $70.50 million, while GAAP earnings per share fell to $0.46 from a consensus of $1.24. The revenue beat was driven by a modest 0.8% decline in the Nightclubs segment, which still generated $57.5 million, offset by a 34.5% drop in the Bombshells restaurant segment to $8.6 million. The EPS miss reflects the company’s transition away from underperforming Bombshells locations and the absence of the large impairment charges that weighed on the prior year’s results.
CEO Eric Langan said the partnership “strengthens our core nightclub business and brings valuable local expertise to Austin.” Joseph added that the collaboration will “solidify Rick’s position in the market and leverage our combined experience to drive revenue and margin growth.” The comments underscore RCI’s focus on operational excellence and strategic expansion in key markets.
Analysts have noted the partnership as a positive step in RCI’s strategy, but no immediate market reaction data is available at this time.
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